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Spotlight

Data Centers Are the New NIMBY Battleground

Packed hearings. Facebook organizing. Complaints about prime farmland and a disappearing way of life. Sound familiar?

A data center and houses.
Heatmap Illustration/Getty Images

Solar and wind companies cite the rise of artificial intelligence to make their business cases after the United States government slashed massive tax incentives for their projects.

But the data centers supposed to power the AI boom are now facing the sort of swift wave of rejections from local governments across the country eerily similar to what renewables developers have been dealing with on the ground over the last decade. The only difference is, this land use techlash feels even more sudden, intense, and culturally diffuse.

What’s happening is simple: Data centers are now routinely being denied by local governments in zoning and permitting decisions after local residents turn against them. These aggrieved denizens organize grassroots campaigns, many with associated Facebook groups, and then flood city council and county commission hearings.

Just take this past week. Last Thursday, Prince George’s County, Maryland, paused all data center permitting after a campaign against converting an abandoned mall into a data center gained traction online, with a petition garnering more than 20,000 signatures. On Monday, faced with a ferocious public outcry, Google rescinded a proposal to build what would’ve been its second data center in Indiana in Franklin Township, a community in southeastern Indianapolis – a withdrawal requested mere minutes before the township council was reportedly going to reject it.

That same day, the rural Illinois town of DeKalb denied a solar company’s request to build a “boutique data center” on the same site as a previously-permitted solar farm. And on Tuesday, the small city of Howell – located smack between Lansing and Detroit, Michigan – denied a data center proposed by an anonymous Fortune 100 company. Apparently, so many people showed up to voice their opposition to the project that the hearing was held in a high school gymnasium.

Opponents cite many things in their arguments against development, some unique to the sector like energy and water use, and others familiar to the solar and wind industry, like preserving prime farmland or maintaining a way of life.

These arguments are incredibly salient, as polling conducted by Heatmap News has revealed: less than half of Americans would ever support a data center coming near them, and this technology infrastructure is less popular than any form of renewable energy. Digging into the cross-tabs of that poll, data centers are unpopular with essentially all age demographics, and arguments against the facilities – like “they use too much water” or “they consume too much electricity” – get relatively similar agreement from registered Democrats and Republicans alike.

Ben Inskeep, a clean energy advocate in Indianapolis, told me he started fighting data centers last year after he became aware of the total power needed to fuel the rising number of projects in the state. His advocacy organization, Citizens Action Coalition of Indiana, previously weighed in on rate hikes and electricity generation decisions. Now, they’re tracking more than 40 data center projects they say are proposed in the state and getting involved in the fight on the ground against them.

Inskeep told me that, from his point of view, the primary support for data centers comes from local governments and municipally-funded works like schools and health facilities that are facing slashed budgets. In some cases the projects are being rejected despite representing millions – even billions – in capital investments and potential tax revenues so large that municipal governments are put between a rock and a hard place as they’re pressured by a weakening economy and state funding cuts.

That’s what happened in Indianapolis. Earlier this month the school district that would’ve been funded by the now-rejected Google data center came out in support of the project, declaring it would welcome new tax revenue, and said it would also lead to new educational partnerships with the tech giant. But none of that mattered. Some local officials even lambasted their colleagues' support as unwarranted, a lashing out that reminds me of what happens to pro-solar officials in Ohio.

Heatmap News has been tracking contested data center projects since the spring of this year and has found almost 100 projects under development across the country that are being actively fought by local organizers, citizens advocacy groups, and environmental organizations. The data is preliminary and likely an undercount.

Still, there’s lots to glean from it. Crucially, as we’ve seen with renewable energy development, data center opposition crops up most often in tandem with the number of projects proposed and constructed. This is only logical: the more of something that is built in a place, the more likely people are to say, “We’ve built enough of that.” This is why Virginia is the top state when it comes to data centers being opposed – it’s a hub that’s seen development spike for far longer than elsewhere in the United States.

I believe that as data center project proposals continue to rise across the country, we’ll see in parallel rising hostility to their development – potentially much larger than anything renewable energy has ever faced. It will undoubtedly also be a problem for anyone in solar or wind who is riding on an AI boom to add demand for their projects.

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Spotlight

How Worried Should Data Center Developers Be About Violence?

Why the shooting in Indianapolis might be a bellwether

A data center, a threat, and Indianapolis.
Heatmap Illustration/Ron Gibson, Getty Images

This week, the fight over data centers turned violent and it has clearly spooked the sector. Extremism researchers say they’re right to be concerned and this may only be the beginning.

Life may never be the same for Indianapolis city-county councilor Ron Gibson, who voted for a controversial data center last week, citing its economic benefits, and, on the morning of April 6, woke to find 13 bullets were fired through the door of his north-east Indy home. Beneath his doormat read a note left behind: “No Data Centers.” Gibson, who did not respond to multiple requests for additional comment, told the media some of the shots landed near where he played with his child hours earlier.

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Hotspots

Texas Investigates Battery Project Over China Fears

And more of the week’s top news on project conflicts.

The United States.
Heatmap Illustration/Getty Images

1. Van Zandt County, Texas – The Texas attorney general’s office is investigating a battery storage project by Finnish energy company Taaleri over using energy storage with batteries made by CATL, the Chinese lithium-ion giant.

  • Will Wassdorf, Texas’ associate deputy attorney general for civil litigation, told lawmakers in a state Senate Business and Commerce Committee hearing on April 1 that the state is probing whether a “smart plug” for the battery facility would allow Chinese companies to “monitor” aspects of the Texas grid.
  • The investigation is due to a complaint filed by Texas anti-BESS activist Nancy White to the attorney general’s office claiming the battery project posed a potential risk to the grid. Wassdorf said they’re only in the initial phases of looking into the matter and quizzing experts on grid connectivity to best understand if a real risk is even there.
  • “If it’s just monitoring, that’s one thing. If it’s a level of connectivity that would provide access or control, where they could turn the batteries off, that would be another issue,” he told the committee.
  • This is as far as I know the first confirmed instance of a state attorney general’s office going after a utility-grade renewable energy or battery storage facility over China ties. CATL is certainly an easy target politically, having been added to restricted businesses lists for federal military procurement. But the idea that using Chinese tech on-site could result in a regulatory crackdown independent of national defense? That’s a new one.
  • Some of the impetus here is locally driven. Van Zandt County has been fighting this project for years, with residents going so far as to seek a restraining order against construction.
  • Taaleri did not respond to a request for comment.

2. Ozaukee County, Wisconsin – We appear to have the first town approving an anti-data center ballot initiative, as the citizens of Port Washington approved a measure allowing them to reject future hyperscalers.

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Q&A

Someone Has to Invest in the Grid. Why Not Data Centers?

A conversation with Searchlight Institute's Jane Flegal about America’s aging grid

Jane Flegal.
Heatmap Illustration

This week’s conversation is with Jane Flegal, esteemed energy wonk extraordinaire and friend of Heatmap News. I reached out to Jane because she recently authored a paper for a think tank – the Searchlight Institute – focused on how to try and get transmission built to satisfy growing electricity demand without creating the cost pain points that foment discontent on the ground. Y’know, how to avoid the sorts of frustrations we chronicle here at The Fight! So ahead of reporting on transmission conflicts I have coming up next week, it made sense to have a candid conversation about just how hard all of this is.

The following transcript was lightly edited for clarity.

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